Robert Lalah, Staff Reporter
SPIRIT AIRLINES, the largest privately-held airline in the United States, has announced some extremely low introductory fares for its soon-to-be-launched service to Jamaica.
According to industry experts those fares could have a crippling effect on the national carrier, Air Jamaica.
Spirit Airlines' fares start from as low as US$49 (J$2,940) each way, for flights to Fort Lauderdale, Florida.
The reduced fares were posted yesterday on the company's website and were also published in the local print media.
A trip to New York will run you US$99 ($5,940) each way. The rate is the same for flights to Chicago, Washington, Orlando and Tampa. Additional taxes and fees are however applicable. A complete listing of the special introductory fares can be viewed at www.spiritair.com.
These services will begin on November 10, but flights must be booked on the website by August 31.
AIR JA WOES
But what will these drastically reduced fares mean for the already embattled Air Jamaica? A whole lot, according to airline industry expert John Gilmore.
Mr. Gilmore told The Gleaner yesterday that, even though these are introductory fares, Air Jamaica will have to match them or lose traffic in volume.
"The impact on Air Jamaica will be significant. A revenue loss on the introductory fares of 75 per cent over its fares on the route last year, and 50 per cent for its currently advertised fares," he said.
"The difference between the two airlines is that Spirit can afford these fares," Mr. Gilmore added. "It's cost to fly one seat (passenger) one mile is US seven cents while Air Jamaica's last year was US 11 cents.
Mr. Gilmore said Spirit's costs are 36 per cent below Air Jamaica's or, put a different way, Air Jamaica's costs are 57 per cent higher than Spirit's.
"Air Jamaica will be hit hard in its revenues and on its bottom line," he said.
Efforts to get a comment from Air Jamaica were unsuccessful.
The 15-year-old Fort Lauderdale-based Spirit Airlines provides service to 20 cities in the United States, Bahamas and the Caribbean with 125 daily flights.
